The Benefits and Consequences of Mobile Banking

Jenin Hattab, Wright College, Sophomore, Summer 2024

Today’s teens and young adults, Gen Z, individuals born from 1997 to 2012, have primarily lived in their young adult years with mobile banking. I interviewed an anonymous financial institution source that has been a teller since 1999 and has seen the benefits of mobile banking apps firsthand. This source shared, “The new generation does mobile banking nowadays……I have never seen that before in my career.” Market Watch Guides surveyed 2,000 Americans regarding each banking trend, from Baby Boomers to Generation Z. “For instance, baby boomers feel more financially responsible; Gen X is most likely to feel financially insecure; millennials have higher retirement accounts; and Gen Z is the most comfortable talking about finances”. (Kasulis, 2024) Perhaps this may be related to the accessibility of this generation’s finances on mobile apps. 

According to a 2023 Deloitte study referenced in Time Magazine, “Gen Z is more than three times as likely to fall for online scams compared to baby boomers” (Burga, 2024). Hailey Bautista,19, a sophomore at the University of Wisconsin Madison, was a scam victim. She received a job opportunity via email with a payout of $500. “I didn't think I was being scammed at all, I was oblivious to the situation.” She deposited the check and received a call from her bank, reporting it was fraudulent. Unfortunately, she can no longer bank at that financial institution and they closed her account indefinitely. Due to issues arising like Haliey’s, “JP Morgan Chase, the largest US bank by assets, now invests $15 billion a year and employs 62,000 technologists to, in part, help fortify its defense against cyber crimes”. (Goodkind, 2024)

The anonymous financial institution source shares, “(The financial institution is) working very hard to educate those who are still learning technology, especially our senior [citizens] who can fall into a fraud trap easily.” Surprisingly, scams are happening to everyone, and no one is completely safe, “you are caught up in a moment where you are busy or distracted, and anything can happen.” Although many technological advances have made financial management easier, it is critical to be on the lookout for financial scams even online.

Resources List: 

“Failed Banks In The US: An Analysis By Year, Size And More.” Forbes, 29 April 2024, https://www.forbes.com/advisor/banking/list-of-failed-banks/. Accessed 22 July 2024.

Goodkind, Nicole. “JPMorgan Chase says hacking attempts are increasing.” CNN, 18 January 2024, https://www.cnn.com/2024/01/17/investing/jpmorgan-fights-off-45-billion-hacking-attempts-each-day/index.html. Accessed 22 July 2024.

“Surprising Ways Your Bank Can Help Your Business.” Encore Bank, 8 July 2024, https://www.bankencore.com/blog/posts/surprising-ways-your-bank-can-help-your-business. Accessed 22 July 2024.

“2024 Generational Banking Trends Survey: How Different Generations Feel About Money.” MarketWatch, 23 May 2024, https://www.marketwatch.com/guides/banking/generational-banking-survey/. Accessed 22 July 2024.

“Why is Gen Z Surprisingly Susceptible to Financial Scams?” Time, February 2024.